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High Frequency Trading

Hillary Clinton's High-Frequency Trading Mistake

John I. Sanders | Posted 10.09.2015 | Politics
John I. Sanders

A close look at Mrs. Clinton's proposal to address the bad behavior of high-frequency traders leaves me concerned that the candidate is thinking more like Val, her SNL alter-ego, than a seasoned legislator and policy wonk.

Hillary Clinton's Wall Street Reform Plan Is A Rebuke To The Obama Administration

The Huffington Post | Zach Carter | Posted 10.08.2015 | Politics

WASHINGTON -- Hillary Clinton on Thursday detailed her plans to crack down on risky Wall Street behavior, delivering a sharp rebuke to the Obama admi...

Hillary Clinton Wants To Crack Down On High-Speed Wall Street Computer Trades

The Huffington Post | Zach Carter | Posted 10.07.2015 | Politics

WASHINGTON -- Hillary Clinton on Thursday will propose a new tax on risky high-frequency trading, according to campaign sources familiar with her pla...

The Volkswagen Cheating Scandal Reveals the True Nature of Capitalism

Cody Cain | Posted 09.30.2015 | Politics
Cody Cain

This problem will not be fixed by slapping a big fine on Volkswagen. The problem is bigger than that. The problem lies with the system itself. We must decide whether our system should serve the interests of people, or profits. Right now, profits are winning.

Why the Proportion of Aggressive HFT Volume Is Roughly the Same Across All Trading Venues

Irene Aldridge | Posted 09.16.2015 | Business
Irene Aldridge

Over the last few years, a number of exchanges and dark pools emerged claiming that their businesses will exclude high-frequency traders (HFTs) detrimental to institutional investors. Almost invariably, the HFTs in question happened to be the so-called Aggressive HFTs.

Aggressive HFT and Institutional Trading Activity - Who Leads Market Crashes?

Irene Aldridge | Posted 09.16.2015 | Business
Irene Aldridge

Most recent routs in the U.S. financial markets have prompted an outpouring of angst. Detractors of high-frequency trading (HFT) were particularly up in arms about the market downturn, which many of them blamed squarely on manipulation by HFT.

Aggressive HFT in U.S. Treasuries

Irene Aldridge | Posted 08.07.2015 | Business
Irene Aldridge

U.S. regulators have recently questioned the role that high-frequency trading (HFT) plays in the bond market. The latest research from AbleMarkets studies a subclass of HFTs known as aggressive HFT. The research shows that:

Stocks With Higher Aggressive HFT Are More Volatile

Irene Aldridge | Posted 08.03.2015 | Business
Irene Aldridge

New research from AbleMarkets shows that stocks with higher participation of aggressive High-Frequency Traders (HFT) experience higher intraday volatility.

It's Time to Add More Than a Second

Steve H. Hanke | Posted 06.29.2015 | Business
Steve H. Hanke

To avoid clock drift, the world's computer clocks will gain an extra second at midnight Greenwich Mean Time, as June turns to July. This adjustment is necessary so that computer clocks can remain synchronized to Universal Time and to the time it takes the earth to rotate around the sun.

Five Years Later, Flash Crash Still Shrouded in Mystery

Dennis M. Kelleher | Posted 05.06.2015 | Politics
Dennis M. Kelleher

Although there were numerous investigations into the supposed causes of the Flash Crash, including by Congress, the Securities and Exchange Commission and the Commodities Futures Trading Commission, none have been very convincing. Those lingering doubts have now been disturbingly confirmed.

Celebrating the Flash Crash with a Wall Street Sales Tax

Dean Baker | Posted 05.04.2015 | Business
Dean Baker

For those who don't remember, the Flash Crash was when the stock market lost almost nine percent of its value from its opening level, with most of this decline occurring in a five-minute period. The market quickly recovered most of this loss. But the crash did reveal something extraordinary.

Aggressive HFT and Volatility

Irene Aldridge | Posted 06.29.2015 | Business
Irene Aldridge

Co-authored with Steve Krawciw Aggressive HFT has long been associated with volatility. Several academic studies hypothesized that higher aggressiv...

The SEC, CFTC and the Real-Time Risks in Today's Markets

Irene Aldridge | Posted 06.24.2015 | Business
Irene Aldridge

The new revelations surrounding the Flash Crash of May 6, 2010, once again brought to light an undeniable fact: U.S. regulators desperately need to boost their real-time surveillance capabilities.

Market Microstructure, the New Frontier for Long-term Portfolio Optimization

Irene Aldridge | Posted 05.12.2015 | Business
Irene Aldridge

Why has market microstructure been left orphaned by portfolio managers until now? First, the data required for market microstructure analysis used to be scarce.

To Catch an Algo Thief

John Bates | Posted 04.28.2015 | Technology
John Bates

Cyberterrorism is on the upswing and algorithmic terrorism is the next iteration. So much of our economy is underpinned by electronic trading that protecting the markets is paramount.

Aggressive High-Frequency Trading in Equities

Irene Aldridge | Posted 04.19.2015 | Business
Irene Aldridge

Aggressive high-frequency trading (HFT) is a classification of electronic trading strategies that rely on ultra-fast infrastructure and market orders to take advantage of news, predictive analytics or short-lived information asymmetries.

Tracking Aggressive High-Frequency Traders and Flash Crashes in Stocks

Irene Aldridge | Posted 03.17.2015 | Business
Irene Aldridge

Traditional variables taken into consideration by investors have included growth prospects, competition, recent earnings, dividends, long-term volatility and the like.

Intraday Risk and Portfolio Selection

Irene Aldridge | Posted 03.10.2015 | Business
Irene Aldridge

At this point in financial innovation, no savvy portfolio manager can afford to ignore intraday risk, and, instead, needs to make it an integral part of his portfolio selection model.

Those Slow to Adopt New Technology Often Benefit Most from It

Andre Bourque | Posted 03.10.2015 | Business
Andre Bourque

In a time-tested CIO article, Stephanie Overby wrote, "When the first wheel was rolled out in 3000 B.C., just a handful of Mesopotamians had enough insight and risk tolerance to give it a whirl while others looked on from a safe distance." And today, the same phenomenon exists.

Real-Time Market Surveillance Delivers Much Needed Answers

Irene Aldridge | Posted 02.22.2015 | Business
Irene Aldridge

Recent market moves left many buy-side investors puzzled and wanting for more information. Was the extreme volatility observed in the Fall of 2014 a gust of wind or a hurricane, a harbinger of further price swings to come?

Microstructure Risk Is a Key Measure in the New Landscape of Risk

Irene Aldridge | Posted 02.01.2015 | Business
Irene Aldridge

To diversify the risks of one's total portfolio, consideration of alpha and beta alone is enough.

What's to Be Done About High Frequency Trading?

Robert Zevin | Posted 01.06.2015 | Business
Robert Zevin

High Frequency Trading (HFT) is essentially no different from a highwayman standing in the road with a gun demanding a tributary toll from all who would go about their business to the better without him.

Michael McAuliff

Elizabeth Warren's Trust Question Poses Problem For Wall Street Exec | Michael McAuliff | Posted 07.09.2014 | Politics

WASHINGTON -- It seems like a simple question. With only 15 percent of Americans trusting the stock market and a declining percentage who invest in it...

Michael Lewis' Flash Boys

Robert Zevin | Posted 09.01.2014 | Business
Robert Zevin

The real value of the book is that its detailed description of this particular scam provides a universal blueprint of the way all such scams work on Wall Street, throughout the financial industry.

Just Three Senators Attend Hearing On Rigged Stock Market

The Huffington Post | Christine Conetta | Posted 06.24.2014 | Politics

WASHINGTON -- The book “Flash Boys” sounded the alarm about a potentially rigged stock market system, prompting the Senate Homeland Security and G...